Buying used car from private party

[johnny chimpo]

If I buy a used car from a private party, am I required to pay sales tax on it, as if I was buying it from a dealer?

 

[NickDanger]

yes

you can't get title issued unless you pay the sales tax

 

[SuperHero]

If the seller is nice, he/she can give you a receipt with a lower price on it. Of course this is something that is illegal and nobody should do it for the love of their state.

 

[johnny chimpo]

I follow. Thanks.

 

[OrangeChipper]

On a similar thought...

It is cheaper in the state of TX to buy a car for a dollar than it is to be given a car. If the car is given as a gift... you have to pay $15 to transfer title. If you buy it for a 1.00. You are scot-free.

So if anyone wants to give away a car... just sell it for $1.00

 

[accuratehorn]

Although it is commonly done, putting a lower sales price on the title transfer form than what you are really paying is a felony. It says so in the small print at the bottom of the form.

 

[Craigcito]

Why should the state be entitled to collect sales tax on the sale of a used car? The tax was already paid when the car was sold as new. Double dippers.

 

[TennesseeHorn]

In reply to:

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[horn4life]

There is also a State form that you need to fill out, the old bill of sale is NOT enough to transfer title. Ahh the simple good old days.

ALSO- make sure it has a current inspection and tax certificate or you will be spending more money and perhaps have problems.

 

[pmg]

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[Mizzou415]

My parents are transferring the title of my car to me for my graduation present. Will I have to pay taxes on that?

 

[accuratehorn]

Don't know. Maybe instead of a gift, they can actually sell it to you for $1 or something like that.

 

[Sgt. Longhorn]

I'm pretty sure that "$1" thing is a myth. I believe that $15 is the least you are going to get away with. At least, that's what they told me when my in-laws gave us a car when we were first married.

I think the minimum tax gift or sale is $15.

 

[HatDaddy]

Mizzou, Not since it is your parents gifting it to you. There is a from 70something to fill out that you can get at your local tax assessor's office.

 

[Mizzou415]

Thanks.